Low-wage labor markets are traditionally viewed as competitive and the possibility of non-competitive behavior by employers is dismissed. This dissertation consists of three chapters linked by the common purpose of studying the possibility of collusive behavior by employers at the minimum wage....

This paper suggests that a non-binding minimum wage may act as a focal point for tacit collusion in the low-wage markets, pulling down wages of some otherwise higher paid workers. A simple game-theoretic argument explaining the emergence of collusive equilibrium is developed, which is then...